The Enforcement Directorate (ED) has issued a provisional order for the attachment of assets, including cryptocurrency valued at approximately ₹2,385 crore, as part of an ongoing investigation into the alleged OctaFX Ponzi scheme. The agency also noted total attachments amounting to ₹2,681 crore, which encompass 19 immovable properties and a luxury yacht in Spain reportedly owned by Pavel Prozorov, who has been arrested by Spanish authorities.
According to the ED, OctaFX allegedly defrauded numerous Indian investors of ₹1,875 crore between July 2022 and April 2023. The firm reportedly presented itself as an online forex trading platform for currency, commodities, and crypto trading, operating without the necessary permission from the Reserve Bank of India (RBI). The ED further stated that initial investors received small profits, which is a characteristic feature often observed in Ponzi schemes.
The probe suggests that OctaFX operated for approximately five years, from 2019 to 2024, and allegedly generated profits exceeding ₹5,000 crore from India during this period. The investigation revealed that the firm purportedly utilized a “distributed global network” designed to evade regulatory scrutiny.
Source: https://www.hindustantimes.com/india-news/ed-attaches-cryptocurrency-worth-rs-2-385-crore-in-octafx-ponzi-scam-case-101760699192053.html